How to Make money As A Water Damage Restoration Company
Water damage makes up the majority of the jobs you’ll be working on. For most restoration companies, water losses probably account for about 75 to 80 percent of their workload. Water damage can come from a number of different sources but what you typically won’t be dealing with is flooding, at least not for the insurance companies. One of the nice things about a water damage company is it is steady work. Here are a few tips to grow your water damage services quicker.
Charge for Service
Most restoration services provide an estimate for the work that needs to be done, such as removing drywall, carpeting and flooring as well as cleaning up debris, drying and getting the humidity out of the space to bring the property back to pre-flood status. You then charge the residence or business directly to obtain payment. The customer is usually responsible for seeking reimbursement from his insurance company if he has a flood policy. Another option is to build relationships with local insurance companies, and then you can offer to bill the insurance company directly for the work once you confirm your customer has a policy and verify their coverage amounts.
Most business models differ from other disaster restoration companies in that they revolve almost completely around local marketing efforts in conjunction with an overarching marketing agenda. By using Search Engine Optimization to single out specific keywords for each franchise, your company might be able to gain way over direct competitors. SEO companies can create hundreds of new web pages that all link together to form a cohesive chain of authority that Google recognizes and thus advances you to the higher orders of search result ranking. For example, United Water Restoration has franchise in Orlando Florida, but they have created not only a web page for Orlando, but also one for every city, village, and community surrounding it as well.
Increase Profit Margins Through Wholesale Sourcing
If you are buying supplies and materials retail, especially building materials, you are getting killed at your profit line. You don’t want to buy retail; you want to buy from the same wholesalers your
retailers are buying from before they mark up your product purchases by 20% – 30%, or more. It is
worth your time to find these profit generating relationships with key wholesalers both in your local area and others nationally that will ship goods to you. I used to get killed on flooring. I just couldn’t figure it out and lost money on nearly every flooring job. Direct wholesale buying for all flooring products is 35% – 50% below retail. These are the same sources your retailers are buying from.